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Federal Gas Tax Fund

On July 3, 2014, the new Administrative Agreement on the Federal Gas Tax Fund was announced between Canada and Nova Scotia. As part of the New Building Canada Plan, the renewed federal Gas Tax Fund (GTF) provides predictable, long-term, stable funding for Canadian municipalities. This funding will help to build and revitalize local public infrastructure while supporting national objectives of productivity and economic growth, a clean environment, and strong cities and communities.

This new Administrative Agreement is effective April 1, 2014 and represents a 10 year investment of an estimated $580M for Nova Scotia municipalities. All Nova Scotia municipalities are eligible to receive payments under the program for their municipal infrastructure and capacity building projects. The seven eligible categories under the first agreement remain with 11 new categories being added to increase program flexibility.

How is funding distributed?

Allocations are determined based on a formula developed by the Union of Nova Scotia Municipalities. Federal payments are transferred twice-a-year to provinces and territories, which in turn flow this funding to municipalities based on meeting set reporting requirements. Municipalities can pool, bank and borrow against their GTF funding allocation for eligible projects, providing significant financial flexibility.

Eligible Project Categories

Eligible projects include investments in Municipal Infrastructure for its construction, renewal or material enhancement in each of the following categories:

  • Drinking water
  • Wastewater
  • Solid waste
  • Community energy systems
  • Public transit
  • Local Roads and Bridges
  • Capacity building

As of April 1, 2014, the following additional categories are eligible under the GTF Administrative Agreement:

  • Highways
  • Short-line rail
  • Cultural infrastructure
  • Tourism infrastructure
  • Sport infrastructure
  • Recreational infrastructure
  • Regional and local airports
  • Short-sea shipping
  • Disaster mitigation
  • Broadband and connectivity
  • Brownfield redevelopment

*Note: Feasibility studies and investments in health infrastructure (hospitals, convalescent and senior centres) are not eligible.

Related Information


Gas Tax Fund in Nova Scotia


Rene Frigault, Planning & Development Officer